In this study, 0.2% and % 0.5 carbon added Distaloy powders produced by utilizing water atomization methodology were pressed under 420MPa compression by an uniaxial press and sintered at 1120 degrees C for 30 minutes. The specimens produced were coated with diamond nanoparticle added chromium using electrochemical method. The coated and uncoated specimens were compared and the effect of coating on the hardness and corrosion behaviour of the powder metal specimens was studied. The specimens were examined with optical microscope and scanning electron microscope (SEM), their X-ray Diffraction (XRD) analysis was made and density were measured as well as they were tested in terms of hardness and corrosion. Their corrosion behavior was studied in 0.1 M NaCl solution by applying Tafel extrapolation method. The experimental results showed that coating of powder specimens with diamond nanoparticles added chromium improves hardness and the corrosion resistance of the samples.